There seemed to be a consistent level of stability achieved by Bitcoin (BTC)[crypto coins=”BTC” type=”text” show=”percent”] and many other cryptos between August and November 2018. However, in the last 24 hours, the crypto market crumbled resulting in a shattering wipe-out of at least $26 billion.
Some experts believe that the most intense daily sell-off in the entire 2018 came as a result of the uncertainty surrounding the looming hard fork in Bitcoin cash. Others point this sharp decline to the market’s technical analysis. The unexpected Bitcoin plunge affected all other major cryptos and digital assets with a small market cap.
At one point, Bitcoin Cash (BCH)[crypto coins=”BCH” type=”text” show=”percent”] had lost over 19% recording the worst drop on the ‘doomsday.’ Within a 7-day period, BCH lost at least 50% against the US dollar and simultaneously by almost 40% against Bitcoin.
Since the beginning of 2018, small market cap digital assets and tokens lost 40% to 80% against BTC. Concurrently, Bitcoin lost almost 70% on its own in the same period. The 15 to 20% losses recorded on November 15 take the total yearly losses to between 95 and 97%.
Bitcoin Cash Hard Fork
A section of experts believes that the Bitcoin plummet resulted from the uncertainties surrounding the split of BCH, currently the fourth-largest digital currency. Major bitcoin cash proponents have started advocating for two distinct versions of the digital currency.
A senior analyst at eToro said that a split in the network will create the two BCH versions dubbed BCHABC and BCHSV after both upgrades are implemented on November 15.
Other analysts like CEO Eric Ervin believe that the latest sharp drop resulted purely from technical moves in the market. The analysis shows that the $6,000 support level was trampled upon by the bear market for several months. Many investors saw it as a stop-loss measure explaining the massive liquidation amounts seen in the last 24 hours after the level was breached.
The price drop could push the market to a bottom from where it can bounce back. For now, most traders may simply “adopt a wait and see” strategy until the markets stabilize again.